January 29, 2013

Are There Really Benefits to U.S. LNG Exports?

Supermajor Royal Dutch Shell announced it landed a deal with Kinder Morgan to get liquefied natural gas out of a terminal in the southern United States. There's only one facility in the region that has the permits needed to get LNG out of the country, though that's still under construction. Last year, a report commissioned by the U.S. Energy Department touted the economic prospects of natural gas exports to the degree that trade groups embraced the resource as one of the future bright spots for the country. While Shell's deal is likely to give momentum to future LNG exports, the devil is in the details.

Before the end of the decade, low-priced American liquefied natural gas is expected to surge onto the global market and, potentially, cause a dramatic shift in worldwide gas market fundamentals. more ››